Definition of 'Actuarial Life Table'
A table or
spreadsheet that shows the probability of a person at a certain age dying
before his or her next birthday. These statistics calculate the remaining life
expectancy for people at different ages and the probability of surviving a
particular year of age. Because men and women have differing mortality rates,
an actuarial life table is computed for separately for men and women.
Also called
mortality table, life table or actuarial table.
Investopedia explains 'Actuarial Life Table'
Insurance companies utilize actuarial life tables to help price
products and project future insured events. Mathematically and statistically
based actuarial life tables assist by showing event probabilities, such as
death, sickness and disability. An actuarial life table can also include
factors to differentiate variable risks such as smoking, occupation,
socio-economic status and even gambling and debt load. Computerized predictive
modeling allows actuaries the ability to calculate for a wide variety of circumstances
and probable outcomes.
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